Accounting systems usage by small businesses in Maluti-a-Phofung, Free State considered

Abstract

The research study focused on assessing the usage of accounting systems by Small Medium Micro Enterprises (SMMEs). The location of the study was SMMEs in Maluti-a-Phofung Local Municipality (MAP LM) in the Eastern part of the Free State province. The objective of the study was to investigate the usage of accounting systems by SMMEs around MAP ML. The research approach that premised the study was a quantitative methodology, which involved distribution of questionnaires as part of field work to SMMEs in MAP LM area. The questionnaires were analysed through a statistical approach, and further linked back to the problem statement posed to the research study. The area of focus in the SMMEs was the usage of Computerised Accounting Systems which was selected because of its huge impact in the operation of most businesses. Computerised Accounting System forms the core of the business sustainability; it ensures that management is always abreast with information. Various literatures were reviewed regarding the usage of Accounting Systems and computerised accounting systems for SMMEs. The results provided an interesting outcome to conclude that the accounting systems being used by the SMEs around the MAP area poses less challenges to the operation of the businesses. It can also be concluded from the study that SMMEs around the MAP LM area are using accounting systems that collect and process data accurately and communicate information to the decision makers with no challenges.